What's driving the need for an Expense Growth Model report?
Slowing growth in divisional expenses is one component of the budget deficit mitigation strategy for FY26. The Expense Growth Model (EGM) calculates an expense growth cap for each division based on different targeted spending levels for different types of expenses from the FY25 Final Operating Budget. For details, see:
FY25-26 Budget Process: Discussion of Divisional Expense Growth Methodology
Metrics in the report
- Expense Growth Model Target % and $ are based on FY25 Final Operating Budget.
- Total Expense Growth Model (EGM) Cap is FY25 Total Expenses + EGM Target $
- (Over)/Under Total Expense Growth Model (EGM) Cap is the difference between the EGM Cap and the FY26 Operating Budget (Working)